Odebrecht concludes R$ bi 2.9 sale of environmental Division

The completion of the sale of Odebrecht Canadian environmental Brookfield, for 2.9 billion R$, will give a little more breath to the group, which today is the center of the biggest corruption scandal in the country. To close the negotiating arm of the sanitation company, six months after the purchase agreement, the company also managed the large Brazilian banks guarantee that the value will not be used for the prepayment of debt, but to strengthen the group box.
Of the almost 2.9 billion R$ (for listing this Tuesday, 25) R$ 2.5 billion will be in the company to give liquidity to business and honor future commitments. The remainder will be paid in up to three years, depending on the Environmental performance targets. Initially, hopes to use the money from the sale to cover guarantees on debt stretching renegotiation of Odebrecht Agroindustrial.
But, with the deterioration of the scenario for the company and the fall of the so-called back log (portfolio of works) of construction, it was defined that the money will be used in the creation of a mattress of liquidity to ensure the business on contractor and Odebrecht Realizações Imobiliárias (OR), who suffers from the retraction of the economy and the drop in consumer demand.
"Now signed contracts help us look to the future. Let''s not forget the past. We''re paying dearly for our mistakes. But these agreements allow us to invest in liquidity and business resumption of construction and infrastructure, "said the President of the Odebrecht Group, Newton de Souza, in a note to the market.
The completion of the sale of Environmental is a breath in the middle of a flurry of bad news that affects the company since the beginning of the car wash, among them, the prison of your Chief Executive Officer, Marcelo Odebrecht. In addition to the brazilian operation, which also suffers from the decline in the economy, the international market has punished the company. In recent months, the company lost important investments abroad, as the highway concession in Colombia and a pipeline in Peru.
The reflection of this reaction of foreign markets, which represented two-thirds of the portfolio of projects of the company until last year, was the drastic retreat of the works. From 2015 to 2016, the portfolio of construction company fell $11.1 billion, from $28 billion to $17 billion. The Contractor represents 41% of Group revenues, according to report by ratings agency Moody''s.
In addition, the Odebrecht must also conclude soon the sale of participation at the dealership Riogaleão, which runs the airport. The HNA Chinese holds the exclusivity to close the deal. Despite still being in due diligence, business is pretty much closed.
Expansion. Brookfield''s side, the acquisition is the first in the water and sewerage sector in Brazil. The Group wants to expand its activities in the area.